Cryptocurrency has been an important financial currency all the while. It has proved to be a lucrative investment option for all those enthusiasts who want to earn a fortune. Gone are the days when Bitcoin was the only currency listed to seek investment.
With demand and time, the number of cryptos has increased by 27.22% to include Ethereum, Litecoin, Dogecoin, and XRP. An investor has to search for the relevant platforms for trading in each type of crypto. For instance, XRP couldn’t be bought and sold across Robinhood.
What Are The Challenges Associated With Ripple And XRP?
Ripple and XRP are integrated into each other. While Ripple is an open-source platform sponsoring faster and more reliable digital transactions, XRP, on the other hand, refers to the digital asset used to settle the transactions on Ripple.
It helps to reduce the losses by approximately 10% arising out of currency exchanges between countries. XRP is a perfect example of a decentralized technology for easier and hassle-free confirmation. The Ripple Blockchain Network relies on different sub-networks, which then facilitate the operation in individual nodes.
What Are The Ways To Invest In XRP?
Many cryptocurrency exchanges are operational throughout to purchase Ripple and XRP. They can be purchased with the help of legal tender and any other form of cryptocurrency. These platforms predominantly include FTX, Binance, eToro, Liquid, and Bitfinex.
The former two sources comprise around 75% of the exchange in XRP. However, XRP isn’t traded on Robinhood.
Therefore, if any investor is looking forward to buying XRP, then Robinhood will not be available to satiate the demand.
Robinhood, however, may serve as an important exchange for dealing in cryptocurrencies like Bitcoin, Ethereum, Dogecoin, Bitcoin SV, and Ethereum Classic.
Basic Steps To Invest In XRP
Amid the legal controversies, the exchange of XRP is a bit complicated. But there are still many easy ways to get that going.
Firstly, an XRP wallet must be activated in the first instance. Next, one is required to find a suitable XRP exchange to trade XRP.
Lastly, all the invested XRP has to be withdrawn. This buying and selling at the instance of millions of servers help XRP to derive its value.
The spot-on markets and P2P platforms are helpful in trading in XRP. The total volume of trade in XRP has crossed 100 million. The cumulative valuation has touched the skyrocketing value of USD 921 million.
Some platforms like Binance allow the execution of trade in XRP on a minimum deposit of USD 10. Others, like Huobi, require a minimum investment of USD 100 to proceed with the investment.
All the platforms that offer XRP for trading create a financial account. This account preserves the funds enough to invest in a given value of XRP. They accept almost every method to deposit money in this account.
These include making payments through credit cards, AdvCash, Paytm, BBVA, and IMPS. An additional processing fee would be charged subject to the trade volume upon every deal executed.
All the XRP wallets should hold around 20 units of XRP for retaining their activation. These 20 units are disbursed against the two-layer solution within which Ripple operates. XRP wallets can be available in different forms. The hardware wallets store the private keys for the offline assets of the investors. The desktop wallets store XRP coins and units through an interface.
There are exchange wallets that not only host XRP trading but also specify the destination for XRP storage. Different forms have different requirements for minimum balance. The hardware wallets require USD 10, the desktop wallets require USD 20, and the exchange wallets require USD 10.
The initial valuations of this cryptocurrency made it the most suitable option to invest in. Unfortunately, the ongoing lawsuits and the reduced market cap continue to impact XRP. The future price predictions are likely to be pegged at around USD 1.27. The present value is around USD 0.76.
Limitations Of Robinhood
Robinhood has been the most popular platform for trading in stocks, cryptos, and ETFs and is operated by 150 million users worldwide. The platform offers an easy interface that is easy to operate. It promotes a less cumbersome process for trading bonds and securities.
This ultimately reduces time and the chances of incurring losses. The platform can be accessed via a browser or an application. Beginners find it very easy to invest in cryptos with the help of this platform. Despite being an effective platform, it has got its limitations.
The platform does not offer XRP for exchange. As already mentioned, it deals in other cryptocurrencies. These currencies can be easily monitored and do not even require the payment of an additional commission fee. Robinhood is an investor-friendly domain that executes most transactions backed up by bitcoin, Ethereum, and even cash.
What Are The Ways To Invest In Other Currencies On Robinhood?
Robinhood helps investors to maintain a complete record of their investments. It develops a separate portfolio that preserves the history and record of any dealings in stocks, shares, bonds, and cryptos.
It generates profitability reports and financial statements to assess the health of the investment. This information helps to make future decisions on investment.
To initiate trading on Robinhood, creating a financial account is a must. This financial account would be automatically linked to a separate crypto account. Usually, an investor transfers the money from the registered account to Robinhood’s financial account, which is then used for purchasing cryptos. The purchased cryptos reflect in the crypto account.
However, the investor is expected to maintain cash equivalent to the cryptocurrency valuation in the crypto account to trade in securities. It is known as the minimum margin. A 100 percent security purchase price should amount to at least USD 2,000.
This condition is a sine qua non, and violation of this clause can also terminate the trade. Robinhood also allows the investor to invest in fractions and not whole numbers. This means that an investor can also purchase a part of Bitcoin instead of purchasing a single unit of bitcoin.
The investor-friendly terms and conditions of the platform have benefitted many investors across the globe. Any pattern day trader is mandated to maintain USD 25,000 in his portfolio for the regular settlement of the trades.
But those who are looking forward to speculation in XRP continue to remain disappointed as the same has to be traded on other exchanges, which are not as easy to operate as Robinhood is.
Is There Any Future Possibility That XRP Will Be Launched On Robinhood?
In a recent interview with the Chief Executive Officer of Robinhood, it was clarified that the exchange plans to bring new currencies. The demand for cryptocurrency is on the rise, and Robinhood would be leaving no stone unturned to grab this opportunity.
Vlad Tenev is excited to launch these new coins for investors in the times to come. There is a possibility that XRP is also included in that list at a valuation of 10x.
If it turns out to be true, Robinhood could become the go-to solution for effectuating trade in any currency. With XRP, the trading volume on Robinhood would be 7.5 times the current volume. The XRP valuation has been calculated on the basis of 2025 and 2030 forecasts. The investors are keeping their fingers crossed for any future revelations.
The ease of execution of trade has always been an important factor in determining the choice of platform. Robinhood has served for the past 15 years to reduce the uncertainty and volatility that is associated with cryptocurrency.
XRP trading has already been oversubscribed by 50 million tokens. The current round is based on the supply of 100 billion tokens. With the availability of XRP on Robinhood, the demand will rise further, thereby pulling the prices higher.